Fire Insurance For Private Forests: Is It Possible?

Fire insurance is an important consideration for anyone who owns property, especially in areas with a high risk of wildfires. Standard homeowners insurance policies typically cover fire damage, including that caused by wildfires, and will pay to rebuild or repair a home, as well as cover the cost of smoke damage and the replacement of belongings. However, in high-risk areas, insurance companies may limit or exclude fire protection, and some of the biggest insurance companies have stopped issuing new homeowners insurance policies in certain states. Private forest owners may find it challenging to obtain fire insurance, and it is important to carefully review the terms of any policy to understand the extent of the coverage.

Fire insurance covers damage to your house and belongings

Fire insurance is an important consideration for homeowners, especially in areas prone to wildfires. Basic homeowners and renters insurance policies typically include coverage for fire damage to your house and belongings. This includes damage caused by fire and smoke. However, it's important to note that insurance companies may not offer fire protection if your home is considered high-risk, in which case you may need to purchase a separate fire insurance policy.

Dwelling Coverage

Dwelling coverage pays to repair or rebuild burned or singed portions of your house. It also covers smoke damage to the house. If your house is completely destroyed by a fire, your insurance company will pay up to your coverage limits to rebuild it.

Personal Property Coverage

Personal property coverage pays to replace or repair your clothing, furniture, electronics, and other belongings after a fire. Insurance companies may set limits on valuable items like jewelry and artwork, so it's important to ensure your policy provides enough coverage for all your valuables.

Liability Coverage

Liability coverage protects you from lawsuits and related damages if a fire spreads from your house to a neighbour's property. It can also help cover legal defence costs if you or a household member is found responsible for property damage.

Loss of Use Coverage

If your home becomes uninhabitable due to fire damage, loss of use coverage will pay for temporary lodging, such as a hotel, and additional living expenses like food and laundry services.

Additional Considerations

It's important to review your insurance policy carefully to understand the specific protections it provides. Fire insurance may not cover all types of fires, and there may be exclusions or limitations. For example, insurance companies typically won't cover damage caused by homeowner neglect, such as an improperly cleaned chimney or uncleaned dryer vents. Additionally, if you live in an area with a high risk of wildfires, your insurance company may exclude wildfire damage from your policy or charge higher premiums.

Fire insurance typically covers wildfires

If you are able to obtain fire insurance that covers wildfires, it will typically include coverage for the structure of your home, your belongings, and additional living expenses if your home becomes uninhabitable due to a wildfire. The insurance company will pay to rebuild or repair your home and remediate smoke damage, including outbuildings on your property such as a garage or toolshed. Your belongings, including trees and shrubs, will also be covered for loss or damage, as well as theft or vandalism in the event of looting after a wildfire. If you need to evacuate or your home is rendered uninhabitable, your insurance will reimburse you for additional living expenses such as hotel rooms or meals.

It is important to note that the amount of your insurance payout will be determined by the terms and limits of your specific policy. Therefore, it is recommended to have enough homeowners insurance and other coverages to financially protect yourself and your family in the event of a wildfire or other disaster. Reviewing your policy carefully and understanding the claim time limits and filing requirements will help ensure that you receive the coverage you need.

Fire insurance claims

Understanding Your Coverage

Before making a claim, it's crucial to understand your insurance policy's specifics. Fire insurance typically covers damage to your home and belongings caused by fire and smoke. This includes wildfires and forest fires, which are becoming increasingly common due to warmer temperatures and shifting precipitation patterns. Basic homeowners, condo, and renters insurance policies usually include fire insurance coverage. However, if you live in an area with a high risk of wildfires, your insurance company may exclude wildfire damage or require separate coverage. Review your policy to determine your level of protection.

Contact Your Insurance Provider

In the event of a fire, contact your insurance provider as soon as possible. They will guide you through the claims process and may send an insurance adjuster to assess the damage. You will likely need to provide a completed “proof of loss” form, describing each damaged item, its approximate date of purchase, and the estimated cost of repair or replacement. Having a detailed home inventory can be extremely helpful during this process.

Document the Damage

Take photos and create an inventory of any damaged possessions. This documentation will support your claim and help determine the cost of repairs or replacements. Do not throw away any damaged items until an insurance company representative has assessed the damage.

Understand Claim Requirements and Time Limits

Ask your insurance provider about any specific requirements for filing a claim, such as repair estimates. Additionally, be mindful of the time limits for filing claims, as these vary from state to state and company to company.

Temporary Accommodations and Additional Living Expenses

If your home is uninhabitable due to fire damage, your insurance policy may provide coverage for temporary accommodations and additional living expenses (ALE). This includes reimbursement for hotel stays, meals, and other necessary costs incurred while your home is being repaired or rebuilt.

Vehicle Damage

If your vehicle is damaged by a fire, this would typically be covered under your car insurance policy, provided you have the appropriate coverage, such as Specified Perils, All Perils, or Comprehensive Insurance. Comprehensive car insurance is often required if your car is leased or financed.

Preventative Measures

While insurance provides financial protection, it's also important to take preventative measures to protect your home and property from forest fires. This includes creating defensible spaces, maintaining roofs and decks, using non-flammable materials, and regularly clearing vegetation and debris that could fuel a fire.

Fire insurance for high-risk homes

Home insurance companies assess the risk of insuring a property in a high-risk area by considering factors such as the home's proximity to brush, canyons, and wildland urban interface locations. If your home is deemed too high-risk, you may be denied coverage or have your current policy cancelled.

• Shop around with multiple carriers: Ask your neighbours which insurance companies they use, as their homes likely have a similar fire risk. Also, consider working with an independent insurance broker who can help you find an insurer that is most likely to offer coverage.
• Take advantage of discount opportunities: Some insurers may offer discounts for bundling home and auto insurance, paying your premium in full, or upgrading your roof to fire-resistant materials.
• Consider a FAIR Plan: FAIR (Fair Access to Insurance Requirements) insurance plans are government-backed and available in most states. These plans are typically more expensive and offer less coverage, but they can be a temporary solution while you search for a permanent option.
• Reduce your home's burn risk: Installing fire prevention features may help lower your premiums. This includes simple measures such as swapping mulch in your garden for gravel, or more expensive updates like installing a fire-resistant roof.
• Combine a FAIR plan with a standard insurance policy: In this option, the FAIR policy covers fire damage, while a separate home insurance policy covers other types of damage, such as theft and liability protection. These plans are known as Difference-in-Conditions (DIC) insurance.

It is important to note that even if you obtain fire insurance for your high-risk home, there may be certain types of fires that are not covered. For example, insurance companies typically do not cover damage caused by an improperly cleaned chimney or homeowner neglect, such as not cleaning dryer vents regularly.

Preventing wildfires

Campfires and Bonfires

• Only start a campfire or bonfire in an appropriate fire pit, cleared of all vegetation and surrounded by stones.
• Never leave a fire unattended, even overnight.
• Ensure your fire is completely extinguished with water and covered with dirt before leaving.
• Avoid starting a fire on a windy day.
• Dispose of used matches and cigarette butts in a closed container or a cup of water.
• Keep lighters and matches out of the reach of children.

Yard Waste or Rubbish Burns

• Only burn yard waste or rubbish in a 50-gallon drum or a fire pit.
• Never leave a fire unattended.
• Make sure your fire is completely extinguished or smothered with dirt before leaving.
• Only burn yard waste or rubbish if permitted by your municipality.
• Avoid burning highly combustible materials, such as paper or fabric soaked in oil or gasoline.
• Avoid burning on windy days.
• Keep a bucket of water, a garden hose, or a fire extinguisher nearby. Consider wetting the surrounding grass and vegetation before lighting the fire.
• Never let children use fireworks, sparklers, or firecrackers without supervision.
• Do not light fireworks on windy nights.
• Extinguish used fireworks with water to ensure they are completely out.

Cars, Tools, and Other Combustion Engines

• Do not park a hot car or machine in dry grass.
• Avoid spilling gasoline or motor oil on grass or vegetation.
• Ensure tractors, off-road vehicles, and equipment used in wooded areas, such as chainsaws, have spark arrestors.

Community Efforts

• Be a responsible member of your community. Since most wildfires are human-caused, it is essential to practice prevention and work together.
• Engage in community efforts to manage vegetation and use fire-resistant construction techniques.

Creating Defensible Space

• Create a defensible space around your home by following the National Fire Protection Association's (NFPA) zone concept.
• Choose fire-resistant plants for your landscaping. Consult a local landscaper or refer to the NFPA's Firewise website for a list of fire-resistant plants specific to your state.
• Space out shrubs and trees to reduce the chance of flames leaping between them.
• Prune trees so that branches are approximately 6-10 feet off the ground and at least 10 feet away from the branches of neighbouring trees.
• Regularly mow grassy areas to maintain a maximum grass height of 4 inches.
• Remove dead and dry plants, fallen leaves, pine cones, and other dry plant material that could fuel a fire.

Frequently asked questions